THE NE.W YORKER that there might be further cuts at any time. Emirs and sheikhs all around the Persian Gulf, moreover, saw in the ouster of the Shah handwriting on the wall. Weak armed forces and large immigrant populations combined to make Saudi Arabia, Kuwait, the United Arab Emirates, and Qatar vulnerable to the Islamic fundamentalism that had wrought the undoing of the Shah. HIS departure shook their sense of security, and the failure of the United States to do anything about it increased their nervousness-the more so when agents of Ayatollah Khomeini actively stirred up religIous opposition to the monar- chical regimes of the lower Gulf. Throughout these countries, therefore, pressure was on the regimes to stop keeping prices down and production up as a favor to the Americans. Saudi Arabia cut back productIon in the sec- ond quarter of 1979 from 9.5 mil- lion barrels a day to 8.5 million. Though the Saudis returned to the 9.S-million-barrel figure for the third and fourth quarters of the year, even that was below capacity. Qatar, Ku- wait, and the Emirates also held pro- duction below top levels, and talked of further decreases. The Iranian exam- ple in effect put a lid on the productive capacity of the countries most able to expand production. WITH output restricted and the prospect of a further drop at al- most any time, the consuming countries came under heavy pressure to assure supplies. At the beginning of last sum- mer, the rich industrialized countries initiated a drive to build up petroleum stocks. The United States did most of its purchasing through AmerIcan-based international oil companies that hold long-term contracts for large amounts of oil from the producing countries. But Germany and Japan, and to some extent France and Italy, lacked such contracts. All four had to scrounge for supplies, and do it openly. They bought extensively on the spot market, which, unlike the con tract market, is normally reserved for small purchases on a day-to-day basis; and in return for bulk purchases they began offering special concessions and side deals. The tight market was reflected in the decisions made at the fifty-fourth OPEC meeting, held in Geneva last June. The Saudis raised the price of their marker crude to eighteen dollars. The Algerians, the Libyans, and the Nigerians accepted a ceiling of $23.50 a barrel for their best crude. But, be- cause the pickings were so lush for the 71 Yl NE C ASS t E t , '/' '. ;: t: . ':.'.; .'. , '1' :::::. ...t .' . }:/ :!\ ':.:', i.:t:r .... .tt ':. .. ( ....... ..... ..; ; , :.' In the classical world of ". f .i/: ::::{ r:::: ::'. $ ./ {. . (' Greece, Egypt and Israel, \Y ,: t. ; }'. , :, t* ' l r n ::r [ U a t ::q :: J It; , .' " "\.....' The .only nonstop <<7; J t service. <.i : $-:(". <<". :: .. ,," >. # N- '.':':.: .J' :.:..: ':"". . ':.' :::: .. .... .......... u Onl)' Olympic flies :;p'" S,,,,, ,,\ "" -4 , f,y.,- widebodied747snonstop from New York to Athens every day of the year. With conven- ient connections beyond Greece to classic vacations in Egypt and Israel. Or to 26 other Greek towns and Isles Fewer seats. Olympic's the only nonstop with the added comfort of 9-abreast seating in Economy Class rather than the usual IO-abreast So you enjoy more elbow room, hip room, dining room. And more room to roam the aisles Easy coßlÏng, easy going. In Athens, you'll land at Olympic's own terminal Com- ing home again, you'll speed through the private baggage and customs facilities we share with American Airlines at JEK Airport in New York. For reservations or free color brochures packed with dozens of vacation plans in Olympic's classical world, call your travel agent or Olympic Airways toda , , . A A r.. THE AIRLINE TO THE CLASSICAL WORLD -............... """ "'v.."'........ ". .::.;. () \." .,q:l H:;........... '"" '.. t ... r.. i r- e _.: 1 J .. " '. t 'y .J v. t ,f' <oØ' ;4- <,w ì. ...;, -. ./ * ^: 4'^ . "<!-, A::> > , ..:............ '" .--.';': t <<' p/ ')oX ,". <-'- ". x r;-.- > ," '.' ./: , .'. '. :t , f f -ì . r' >> '. ':}, <- " I ! 1.. JI (-: " .. ft .' :.": "W. .. -.. 'vI t 1 :(